Countryside Properties submitted plans to build 1,585 new homes in south west Bicester as well as neighbourhood retail outlets and community facilities, schools, offices, employment premises and open space.

Cherwell District Council (CDC) gave planning permission for the scheme last week following several years of negotiations between the council, Oxon County Council and Countryside Properties.

The developer will contribute facilities and funding, to the tune of £14million, for supporting infrastructure through a Section 106 agreement with CDC. The money will be spent on major improvements such as public transport, education, library services and highway improvements.

Around 30% of the new properties will be affordable homes and the developer will also provide 17 hectares of land for a sports village, land for secondary education and provision of a primary school. A new south west peripheral road from the A41 to Howes Lane will also be built.

Cllr Michael Gibbard, portfolio holder for planning and housing at CDC, said: "The scheme will greatly enhance services and facilities for the town, creating affordable housing and much needed sports areas for Bicester.

"It also demonstrates our continuing commitment to the economic prosperity of Bicester."

Oxon County Council cabinet member for school improvement, and member for Bicester, Cllr Michael Waine, said: "It is vital all the necessary infrastructure is in place for people moving to the area, especially where children's education is concerned."

Outline planning permission was granted in January last year, despite opposition from Chesterton residents and local councillors, who fear the village will be engulfed by the new estate.

Cllr Andrew Fulljames, Cherwell District Council member for Chesterton, was among the opponents. He said although new houses are a certainty, the current economic climate could mean they are not built any time soon.